Jaguar’s profits plummeted by 99%: what’s the reason?
15 May 19:45
Jaguar Land Rover’s (JLR) annual profit plummeted by more than 99% due to the impact of U.S. tariffs and a cyberattack that paralyzed operations at its plants for several weeks. The Guardian reported this, according to "Komersant Ukrainian".
“JLR reported just £14 million ($18.5 million) in pre-tax profit and before extraordinary expenses for the fiscal year, which is £2.5 billion ($3.3 billion) less than the previous year,” the publication writes.
The company manufactures luxury cars under the Jaguar and Land Rover brands. It is one of the UK’s largest automakers and employs approximately 33,000 people in the country.
The company has faced a series of setbacks over the past year. In particular, U.S. President Donald Trump’s tariffs on cars have caused chaos in one of its main export markets.
“The tariffs, which Trump initially raised to 25% and then lowered to 10% on cars from the UK, hit demand in the US for JLR luxury cars,” the publication reports.
Also, in early September, Jaguar Land Rover fell victim to a cyberattack. This forced the automaker to shut down most of its systems and plants for four weeks, and the consequences continued to be felt throughout the fall.
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Industry Crisis and Chinese Expansion
In addition to internal problems, Jaguar Land Rover faced intense pressure in China, where local manufacturers are mass-producing new models, crowding out traditional brands. However, JLR is not the only company in trouble.
This is not an isolated case in the auto industry. In particular, Japanese manufacturer Honda reported its first annual loss in its 70-year history as a public company.
“Honda was forced to write off 1.6 trillion yen ($8.68 billion) in investments in electric vehicles after Trump canceled subsidies for them—this led to a loss of 423 billion yen ($2.9 billion),” the report states.
JLR CEO Patamadai Balachandran Balaji noted that the company ended the year on a positive note and was able to return to the market, demonstrating resilience.
The company also noted that it remains “resilient and well-positioned to address the geopolitical, inflationary, and regulatory challenges facing the industry,” with £6.9 billion ($9.1 billion) in reserves at its disposal.
Cyberattack on Jaguar Land Rover Automotive
As a reminder, in September 2025, Jaguar Land Rover was the target of a cyberattack that effectively halted its operations and caused widespread disruptions in the automotive industry’s supply chains. Production sites in the UK, Slovakia, Brazil, and India have been idle since the beginning of the month, and some suppliers have yet to receive payment due to the company’s accumulated debts.
JLR reported that the partial restoration of IT systems allowed it to resume processing supplier invoices, speed up the delivery of parts to dealers, and revive car sales and registrations. The company had planned to gradually resume production starting October 1, but a full return to normal operations required more time. To address the financial impact of the incident, JLR secured a £2 billion ($2.7 billion) loan from international banks.
On October 8, the company began resuming operations after a six-week shutdown.
Jaguar Land Rover Automotive PLC (JLR) is a British multinational automaker that produces luxury cars and SUVs, with its headquarters in Whitley, Coventry, United Kingdom. Jaguar Land Rover’s primary business is the design, development, manufacture, and sale of vehicles under the Jaguar and Land Rover brands. The company is the largest employer in the automotive industry in the UK, with 33,000 employees as of September 2025. Jaguar Land Rover has been a subsidiary of the Indian automaker Tata Motors Passenger Vehicles since its establishment as a holding company for the acquisition of Jaguar Cars and Land Rover from Ford in 2008.
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